![\"A](\"https:\/\/www.canadianrealestatemagazine.ca\/wp-content\/uploads\/2018\/03\/Depositphotos_51776189_L.jpg\" "\\"-\\"")
<\/p>\nTorontonians, frustrated by their investments\u2019 diminished returns, have turned to buying property in Picton en masse. And all indications are that their investments will be sound for years to come.<\/p>\n
Bosley Real Estate sales agent Davelle Morrison says the numbers simply don\u2019t work for Toronto investors anymore for reasons ranging B-20\u2014the new mortgage rules that have redirected many would-be single-family detached buyers to the condo market\u2014to escalating entry price points and carrying costs. But in Prince Edward County, and Picton in particular, a weekend getaway destination only a couple of hours east of The Big Smoke, a confluence of available properties and demand has drawn the attention of real estate investors.<\/p>\n
\u201cI purchased a fourplex there a couple of months ago and it\u2019s cash flow-positive, even after taking into account the cost of a property manager,\u201d said Morrison. \u201cWe\u2019re renting to long-term tenants, with rents ranging from $867 to $950 for four two-bedroom units. Rents there are certainly not as high as they are in Toronto, but because the price is cheaper, it allows us to cash flow well.\u201d<\/p>\n
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Prince Edward County\u2019s vineyards, microbreweries, distilleries and restaurants have made it a major tourist attraction for vacationers from Toronto, Ottawa and Montreal. Even Sandbanks Provincial Park is rammed during summer months with campers and beachgoers.<\/p>\n
\u201cIt looks like the Caribbean; you don\u2019t even realize you\u2019re in Ontario,\u201d said Morrison.<\/p>\n
She added that fixer-uppers can be had for as little as $250,000, while finished houses go for up to $500-550,000. That isn\u2019t a lot of money for investors\u2014many of whom spend more on shoebox condos in Toronto\u2014who want to use the houses as short-term Airbnb rentals. Moreover, the county welcomes the economic spinoff.<\/p>\n
\u201cIn Prince Edward County, there aren\u2019t big hotel chains, and the problem with Airbnbs in Toronto is the hotel chains are upset,\u201d continued Morrison. \u201cPrince Edward County doesn\u2019t have hotel chains getting upset, and they need tourists to come in to create jobs for people and spend money in the county.\u201d<\/p>\n
One challenge facing Picton\u2019s renters is most lodgings are being used for Airbnb, effectively turning long-term renters into a lucrative target market. Similarly, the demand for Airbnb rentals isn\u2019t dissipating.<\/p>\n
Aziz Sidi is an Airbnb landlord in Picton who bought a house with an accompanying coach house for $326,000, then put another $100,000 of renovations into it. He pulls in around $2,000 during the slowest months of the year, and up to $12,000 during the peak month of July. In all, after all his expenses (including the mortgage) he averages $7-8,000 of profit a year.<\/p>\n
\u201cQuite honestly, the place has already gone up in value,\u201d said Sidi. \u201cI bought it for $326,000 and I can sell it for $400,000, and it\u2019s only been a year and a half. The county is getting better and better every day. Every month or two, you have a new restaurant opening. A culinary school is also opening in Picton. It just keeps getting better and better and better, and it will obviously become more of a destination.\u201d<\/p>\n
Airbnb landlords have been known to draw the ire of neighbours, but Sidi says that hasn\u2019t been the case in Picton because locals realize landlords are making both direct and indirect contributions to the economy.<\/p>\n
\u201cI\u2019ve had no complaints, no issues,\u201d he said. \u201cWhen I bought the place, my neighbours were aware I\u2019d be renting it out on Airbnb, and they actually offered to keep an eye on it for me. People are fantastic here. It\u2019s a kind place.\u201d<\/p>\n
More and more investors are turning to short-term\/vacation rentals to maximize their returns. Why aren’t you? Subscribe for CREW today to gain access to the latest information and strategies.<\/p>\n
Torontonians, frustrated by their investments\u2019 diminished returns, have turned to buying property in Picton en masse. And all indications are that their investments will be sound for years to come. Bosley Real Estate sales agent Davelle Morrison says the numbers simply don\u2019t work for Toronto investors anymore for reasons ranging B-20\u2014the new mortgage rules that […]<\/p>\n","protected":false},"author":6,"featured_media":27194,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/7724"}],"collection":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/comments?post=7724"}],"version-history":[{"count":4,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/7724\/revisions"}],"predecessor-version":[{"id":28932,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/7724\/revisions\/28932"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media\/27194"}],"wp:attachment":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media?parent=7724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/categories?post=7724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/tags?post=7724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}